Farm size and production efficiency in Chinese agriculture: output and profit

2019 ◽  
Vol 11 (1) ◽  
pp. 20-38 ◽  
Author(s):  
Jiao Yan ◽  
Chunlai Chen ◽  
Biliang Hu
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Farm Size ◽  
Land Consolidation ◽  
Profit Efficiency ◽  
Content Type ◽  
Land Size ◽  
The Relationship ◽  
Land Using

PurposeThe purpose of this paper is to analyze the relationship between farm size and agricultural production efficiency from the aspects of output and profit in order to find an optimal farm size that achieves both output and profit efficiency in agricultural production in China.Design/methodology/approachThis study uses the 2012 China Family Panel Studies survey data and employs the stochastic frontier analysis (SFA) models to investigate empirically the relationship between farm size and agricultural production efficiency.FindingsThe study finds that there is an inverted-U curve relationship between farm size and output efficiency and a U-shaped curve relationship between farm size and profit efficiency in agricultural production in China. Based on the empirical results, the study estimates that the appropriate farm size is around 10–40 mu and the optimal farm size is around 20–40 mu both in terms of output efficiency and profit efficiency in Chinese agricultural production under the current agricultural technology and land management system.Practical implicationsThe findings of this study suggest that appropriate land consolidation will bring more benefits to farmer households and agricultural production efficiency. There are some policy implications. First, governments should give long term and more stable land using rights to farmers through extending the period of land contract and verifying land using rights. Second, governments should encourage transfers of land using rights and promote land consolidation. But the implementation of this policy should consider regional differences and not be used for blindly pursuing increasing land size. Third, land consolidation should be accompanied with the development of specialized agricultural services.Originality/valueThe paper makes two major contributions to the literature. First, the authors use the SFA model to investigate the relationship between land size and agricultural production efficiency. Second, the authors establish two SFA models – the stochastic frontier output analysis model and the stochastic frontier profit analysis model – to estimate the optimal land size to achieve both output and profit efficiency of agricultural production in China.

Assessing Production Efficiency by Farm Size in Rwanda: A Zero-inefficiency Stochastic Frontier Approach

2020 ◽  
Author(s):  
Jules Ngango ◽  
Seungjee Hong
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier ◽  
Sub Saharan Africa ◽  
Farm Size ◽  
Farm Income ◽  
Maize Production ◽  
Positive Effects ◽  
Study Results ◽  
The Relationship

Abstract This study investigates the relationship between farm size and technical efficiency for maize production in Rwanda. Since levels of technical efficiency tend to vary considerably across farms in sub-Saharan Africa, with a mixture of both inefficient and fully efficient farms, the use of the conventional stochastic frontier method is not appropriate. In this paper, we apply a zero-inefficiency stochastic frontier method that manages both efficiency and inefficiency in the studied sample. The average technical efficiency of maize farms for the full sample is estimated at 0.64, demonstrating that maize output can be improved by approximately 36% without increasing the proportion of farm inputs used. Regarding the relationship between farm size and technical efficiency, the study results show a positive relationship between farm size and technical efficiency for maize production in Rwanda. Thus, the enforcement of land reforms such as land consolidation and enhanced aggregate productivity growth are needed. The results also indicate that education, cooperative membership, extension services, access to credit, off-farm income, land tenure, and livestock ownership have significant and positive effects on technical efficiency.

scholarly journals Cassava Production Efficiency in Southern Ethiopia: The Parametric Model Analysis

2021 ◽  
Vol 5 ◽  
Author(s):  
Alula Tafesse ◽  
Bekele Mena ◽  
Abrham Belay ◽  
Ermias Aynekulu ◽  
John W. Recha ◽  
...  
Keyword(s):  
Production Efficiency ◽  
Formal Education ◽  
Stochastic Frontier ◽  
Household Head ◽  
Raw Material ◽  
Production Model ◽  
Farm Size ◽  
Southern Ethiopia ◽  
Cross Sectional ◽  
Cassava Production

Due to capital constraints and land scarcity in developing countries, introducing new technology to boost productivity is difficult. As a result, working to improve cassava production efficiency is the best option available. Cassava is increasingly being used as a food source as well as an industrial raw material in the production of economic goods. This study estimates cassava production efficiency and investigates the causes of inefficiency in southern Ethiopia. Cross-sectional data from 158 households were collected using a systematic questionnaire. The Cobb-Douglas (CDs) stochastic frontier production model was used to calculate production efficiency levels. The computed mean result showed technical efficiency (TE), allocative efficiency (AE), and economic efficiency (EE) levels of 74, 90, and 66%, respectively. This demonstrated that existing farm resources could increase average production efficiency by 26, 10, and 34%, respectively. The study found that land size, urea fertilizer application, and cassava planting cut all had a positive and significant effect on cassava production. It was discovered that TE was more important than AE as a source of benefit for EE. Inefficiency effects modeled using the two-limit Tobit model revealed that household head age, level of education, cassava variety, extension contact, rural credit, off-farm activities involvement to generate income, and farm size were the most important factors for improving TE, AE, and EE efficiencies. As a result, policymakers in government should consider these factors when addressing inefficiencies in cassava production. It is especially important to provide appropriate agricultural knowledge through short-term training, to provide farmers with access to formal education, to access improved cassava varieties, and to support agricultural extension services.

scholarly journals Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

2006 ◽  
Vol 38 (1) ◽  
pp. 213-224 ◽  
Author(s):  
Denis A. Nadolnyak ◽  
Stanley M. Fletcher ◽  
Valentina M. Hartarska
Keyword(s):  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
The United States ◽  
Farm Size ◽  
Quota System ◽  
Frontier Analysis ◽  
Farm Level ◽  
Peanut Production ◽  
Growing Conditions

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.

Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Liu ◽  
Chunyu Liu ◽  
Mi Zhou
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Rural Households ◽  
Financial Inclusion ◽  
Mediating Effect ◽  
Chinese Family ◽  
Economic Activities ◽  
Agricultural Output ◽  
Content Type ◽  
Negative Effect

PurposeThe development of digital inclusive finance appears to be able to solve the difficulty of traditional finance, which cannot completely cover agriculture and farmers and provides better financial services and products to Chinese farmers. Thus, it improves the farmers' enthusiasm for agricultural production. The purpose of this paper is to clarify whether this goal is indeed being achieved.Design/methodology/approachThis paper theoretically analyzes the mechanism that influences the effect of digital inclusive finance on rural households' agricultural production decisions and conducts an empirical study based on a sample from the Chinese family database (CFD).FindingsFirst, the development of digital financial inclusion in general can encourage rural households to reduce agricultural production. Second, the negative effect of digital inclusive finance on households' agricultural output is realized by widening the gap between the efficiency of non-agricultural economic activities and the efficiency of agricultural production. The wider the gap is, the lower the enthusiasm of households for agricultural production. Third, the mediating effect of “digital financial inclusion – difference in efficiency – agricultural output” has a significant negative effect on households with low agricultural production efficiency, but not households with high agricultural production efficiency. Digital inclusive finance has no significant effect on the difference in efficiency between the two economic activities of high-efficiency households, but a greater difference in efficiency between the two economic activities corresponds to higher enthusiasm of households for agricultural production.Originality/valueTo the best of our knowledge, this paper is the first to analyze the impact of digital financial inclusion on Chinese farmers' agricultural production. The findings of this study can provide policy-related insights to help local governments promote the development of digital finance in China's agricultural economy.

DEVELOPMENT OF RURAL SOCIAL INFRASTRUCTURE AND ITS IMPACT ON ECONOMIC INDEXES OF AGRICULTURAL PRODUCTION

2015 ◽  
Vol 10 (3) ◽  
pp. 46-51 ◽  
Author(s):  
Мухаметгалиев ◽  
Farit Mukhametgaliev ◽  
Гайнутдинов ◽  
Ilgizar Gaynutdinov ◽  
Ситдикова ◽  
...  
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Social Sector ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Rural Infrastructure ◽  
Production Development ◽  
Economic Indexes ◽  
Relationship Of ◽  
The Relationship

The article describes the features of the effect of the level of social rural infrastructure development on the level of agricultural production; cites the results of a combined study of indicators of agricultural production development and social infrastructure; reveals the relationship of agricultural production efficiency to the level of social infrastructure development; formulates the main conclusions as guidelines for the regulation of rural social sector development of the region in future.

METHODOLOGICAL APPROACHES TO ASSESSMENT OF THE RELATIONSHIP OF AGRICULTURAL PRODUCTION AND RURAL SOCIAL INFRASTRUCTURE

2015 ◽  
Vol 10 (3) ◽  
pp. 39-45 ◽  
Author(s):  
Мухаметгалиев ◽  
Farit Mukhametgaliev ◽  
Файзрахманов ◽  
Dzhaudat Fayzrakhmanov ◽  
Гайнутдинов ◽  
...  
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Infrastructure Development ◽  
Social Infrastructure ◽  
Production Development ◽  
Effective Performance ◽  
Methodological Approaches ◽  
Relationship Of ◽  
The Relationship

The article provides an overview of the main methodological approaches to the study and evaluation of the relationship of agricultural production efficiency and the development of rural social infrastructure, investigates the features of the effect of the level of rural social infrastructure development on the level of agricultural production development, offers a system of effective performance of agricultural production and a set of indicators, characterizing the level of rural social infrastructure development and having impact on the development of agricultural production.

Agricultural credit and technical efficiency in Ghana: is there a nexus?

2016 ◽  
Vol 76 (2) ◽  
pp. 309-324 ◽  
Author(s):  
Abdul-Hanan Abdallah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Probit Model ◽  
Estimation Procedure ◽  
Farm Size ◽  
Agricultural Credit ◽  
Content Type ◽  
The Impact ◽  
Unique Dataset

Purpose – The purpose of this paper is to examine the impact of agricultural credit on technical efficiency of Ghanaian maize farmers using a unique dataset drawn from the database of Sub-Saharan Africa’s intensification of food crops agriculture (Afrint II) in 2008 period. Design/methodology/approach – In this study, a two-stage estimation procedure is employed to determine impact of agricultural credit on technical efficiency of Ghanaian maize farmers. The first stage utilized probit model while the second stage utilized stochastic frontier approach to estimate impact of credit on technical efficiency of Ghanaian maize farmers. Findings – The study found that farmers are producing below the frontier with average technical efficiency of 47 percent. Policy variables such as credit access; education, extension access and farm size played a stronger role in technical efficiency. Agricultural credit in particular increased technical efficiency by 3.8 percent. Research limitations/implications – The results should not be extended to the impact of agricultural credit on economic efficiency since the allocative efficiency component is not considered in this study. Also, caution should be taken in the interpretation of these results because the data could not permit the incorporation of all variables that might affect technical efficiency. Originality/value – The originality of the paper and its contribution to existing literature largely lies from the use of a unique dataset to find evidence of the impact of credit on efficiency in Ghana.

The moderating effect of movie production efficiency on the relationship between eWOM and review helpfulness

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sangjae Lee ◽  
Joon Yeon Choeh
Keyword(s):  
Production Efficiency ◽  
Nearest Neighbor ◽  
Online Reviews ◽  
Moderating Effect ◽  
K Nearest Neighbor ◽  
Content Type ◽  
Online Word Of Mouth ◽  
Study Results ◽  
Review Helpfulness ◽  
The Relationship

Purpose This paper aims to intend to study the effect of movie production efficiency on eWOM and the moderating effect of efficiency on the relationship between eWOM and review helpfulness for movies. Design/methodology/approach Production efficiency is suggested by comparing the power of movie resources (e.g. the power of actors, directors, distributors, production companies) against box-office revenue through a data envelopment analysis (DEA). Findings The study results present that the number of reviews, the number of reviews by reviewers and review extremity are greater in an efficient subsample than in an inefficient subsample. For efficient movies, the review depth and the strength of the sentiments in the reviews are more positively related to review helpfulness. The prediction results for review helpfulness using the k-nearest neighbor method and automatic neural networks show that the efficient subsample provides a significantly lower prediction error rate than the inefficient subsample. The study results can support the effective facilitation of helpful online movie reviews. Originality/value As the numbers of online reviews are increasingly used to provide purchase decision support, it becomes crucial to understand which attributes represent average helpful reviews for movies. While previous studies have examined eWOM (online word-of-mouth) variables as predictors of helpfulness on movie websites, the role of the production efficiency of movies has not been examined considering the relationship between eWOM and review helpfulness for movies.

The Impact of Credit Constraint on Agricultural Productivity - Evidence from Less Developed Province of Jiangxi in China

2014 ◽  
Vol 651-653 ◽  
pp. 1664-1669
Author(s):  
Chang Sheng Li ◽  
Wen Qi Zhang
Keyword(s):  
Agricultural Production ◽  
Production Efficiency ◽  
Credit Constraints ◽  
Stochastic Frontier ◽  
Primary Objective ◽  
Production Functions ◽  
Jiangxi Province ◽  
Credit Constraint ◽  
The One ◽  
The Impact

The primary objective of this paper is to explore how formal credit constraints affect farmers’ efficiency by the 743 random farmer samples from Jiangxi province in China. The statistic analyses of their individual characteristic, together with the inputs and outputs of their production shows that the constrained value of the production of the credit is RMB 563.2 yuan which is RMB 190 yuan less than those who are not credit constrained. The samples are divided into two groups, the one group with farmers who have been constrained by the formal credit while the other has not. The empirical results of the stochastic frontier production functions show that the agricultural production efficiency is not only affected by the labor and land, but also associated with the formal credit constraints. The results also reveal that efficiency loss of the credit constrained farmers is 17.8% higher than those of the unconstrained farmers. By doing this research, we have got evidence which clearly shows that formal credit constraints do distort the agricultural inputs, and by alleviating formal credit constraint, it is greatly helpful to improve the efficiency of agricultural production.

scholarly journals Exploring the Relationship between Information-Seeking Behavior and Adoption of Biofertilizers among Onion Farmers

Agronomy ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 1258
Author(s):  
Hazem S. Kassem ◽  
Bader Alhafi Alotaibi ◽  
Fahd O. Aldosri ◽  
Muhammad Muddassir
Keyword(s):  
Mobile Applications ◽  
Information Seeking ◽  
Agricultural Production ◽  
Farm Size ◽  
Information Seeking Behavior ◽  
Extension Programs ◽  
Chemical Fertilizers ◽  
Lack Of Information ◽  
Seeking Behavior ◽  
The Relationship

Recently, there has been increasing concern about reducing and replacing chemical fertilizers with biofertilizers to enhance soil fertility and maintain agroecosystems and sustainable agricultural production. Given that knowledge of biofertilizers is information-intensive, the lack of information-seeking behavior (ISB) might be the primary constraint for farmers adopting biofertilizers. This study aimed to analyze how ISB influences farmers’ adoption of biofertilizers, using a sample of 228 onion farmers in Al-Ahsa Governorate, Saudi Arabia. The results indicate that most farmers had a moderate level of ISB. The most frequently accessed sources were mobile applications, extension institutions, and progressive farmers. The results of cluster analysis show that farmers’ ISB differed significantly according to their main occupation. Among the onion farmers, 35%had adopted biofertilizers. The findings also reveal that farm size, attitude toward biofertilizers, the credibility of information sources, and the usefulness of the information positively and significantly influence farmers’ adoption of biofertilizers. It was concluded that understanding the relationship between adoption and ISB could assist policymakers in focusing on knowledge diffusion when designing extension programs and advisory services to facilitate better usage of biofertilizers.

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